Royal Bank of Scotland has launched a new set of capital-protected cash products to entice corporate cash back into investments.
Philip Turner, global head of strategic product marketing and corporate structuring, said cash equating to 5% of GDP is being held on UK corporate balance sheets. "Corporates are managing their balance sheets with much more liquidity on them, especially since the financial crisis," he said. "The question that arises is, 'What do I do with [that] cash?'"
RBS has re-issued a more liquid range of capital-protected cash products offering short-term FX- and equity-linked products in a deposit or bond format. Meanwhile, the new range offers one-year to seven-year maturities with tailored exposure to several asset classes. The products include an 18-month inverse floater, a two-year range accrual, a two-year positive averaging carry note, an 18-month collared deposit and an 18-month wedding cake product.
The bank said it will offer daily liquidity through a secondary market to address pricing transparency.